Dáil Éireann Debate, Tuesday - 28 April 2026
201. Deputy Michael Cahill asked the Minister for Enterprise, Tourism and Employment given that tourism is made up of about 46,000 SMEs, and that they operate on very small margins, if he is taking any initiatives to help moderate cost increases; and if he will make a statement on the matter. [30442/26]
Amharc ar fhreagraI am very conscious that tourism is a predominantly SME-based sector, comprising approximately 46,000 businesses, many of which operate on tight margins and are particularly exposed to cost pressures, including energy, labour and other input costs.
In line with the Programme for Government, tourism policy has been significantly strengthened through the transfer of tourism functions to my Department and the launch of A New Era for Irish Tourism, the Government’s new National Tourism Policy Statement. This policy places tourism firmly within the wider enterprise, trade and employment agenda and includes a strong and explicit focus on supporting tourism SMEs, improving competitiveness and productivity and building long-term resilience.
The Policy Statement sets out a clear framework to address cost pressures in a sustainable manner by prioritising measures such as extending the tourism season, supporting year-round tourism and employment, accelerating digital transformation and improving operational efficiency across businesses. Reducing seasonality, particularly through investment in the October to May off-peak period helps SME’s spread fixed costs over a longer trading year and improves financial viability.
More broadly, the Government recognises the significant challenges facing enterprises arising from global energy price volatility. As part of the comprehensive fuel and energy support measures announced by Government, targeted supports have been put in place to assist businesses, including tourism SMEs. In parallel, Government policy continues to focus on reducing exposure to fossil fuel price volatility through improved energy efficiency, fuel switching and the transition to low-carbon, indigenous energy sources.
For instance, Fáilte Ireland’s Climate Action Programme, places emphasis on helping tourism businesses realise cost savings at an earlier stage. Recent enhancements to the programme are designed to accelerate the identification and implementation of energy-efficiency and fuel-saving measures, allowing businesses to reduce operating costs more quickly, while also supporting emissions reduction and long-term sustainability. Participants are also guided towards relevant SEAI grant supports where appropriate.
To address cost increases and pressures, the Government committed in the Programme for Government 2025 to establishing a Cost of Business Advisory Forum. The Forum brings together business representative bodies, including tourism and hospitality interests, with senior officials from Government Departments, regulators and State agencies. The Forum has met regularly over the past eight months to examine key cost drivers such as energy, insurance, planning and regulatory requirements, water services and financial services. Tourism and hospitality representatives have highlighted the impact of cost and regulatory pressures on operations and competitiveness. I attended the most recent meeting of the Forum on 22 April, and its final report, which sets out practical short- and long-term measures to reduce cost pressures on SMEs, is expected to be brought to Government before the summer recess.
In Budget 2026, I also secured additional funding for Fáilte Ireland to support balanced regional development and domestic marketing, which are particularly important for smaller businesses outside the main tourism centres. The Government has taken concrete steps to support cost moderation and competitiveness in the sector, including the reduction of the VAT rate on food and catering services to 9% from July 2026.
Taken together, these measures demonstrate the Government’s ongoing commitment to supporting tourism SMEs, moderating cost pressures where possible and ensuring that the tourism sector remains competitive, resilient and sustainable into the future.
